The Maine Division of Administrative and Monetary Providers (DAFS) not too long ago launched the first draft of proposed rulesto control the state’s adult-use cannabis business, which was legalized through poll initiative within the 2016 elections. Whereas there’ll nearly definitely be modifications made to the rules as they exist at present, under we evaluation some gadgets pertinent to the state’s nascent wholesale market.

The draft guidelines lay out 4 tiers of cultivation licenses. Tier 1 licenses enable the farming of as much as 30 mature crops or 500 sq. toes of cover. Tier 2 licensees will be capable to develop up to 2,000 sq. toes of cover house. Tier Three operations might be permitted to domesticate as much as 7,000 sq. toes of cover space. Tier four growers may go as much as 20,000 sq. toes of cover, or almost a half-acre. A license for nursery cultivation services can also be being proposed for operations that may promote clones and seeds to different licensed growers or shoppers.

Importantly, “cover” is outlined in Maine’s draft guidelines as areas that include mature, flowering crops solely. Below the present model of the rules, licensed cultivators would be capable to have limitless quantities of immature crops and “seedlings,” or clones.

Cultivation in greenhouses and outside, in addition to indoor rising, might be allowed in Maine’s adult-use market, although in fact safety, fencing, and lighting necessities are outlined for every cultivation method.

License charges range in keeping with tier, in addition to an operator’s cultivation methodology. Tier 1 outside growers pays charges of $9 per mature plant or $250, whereas these on this tier rising indoors or utilizing a mixture of synthetic and pure mild pays $17 per mature plant or $500 yearly. Annual license charges for a Tier 2 allow have been set initially at $1,500 for an outside cultivator and $3,000 for different develop strategies. Tier 3 licensees pays $5,000 yearly if farming outside or $10,000 per yr in any other case. Tier four cultivators will see annual license charges of $15,000 for outside rising or $30,000 for indoor or blended operations. Annual charges for a nursery license have been set at $350.

The rules don’t embody a state-level cap on the variety of cultivation licenses that could be issued. Nonetheless, all companies in search of to enter Maine’s adult-use market must safe native approval earlier than with the ability to achieve a state license, which can probably prohibit the proliferation of such operations considerably.

The proposed rules additionally present tips pertinent to Maine’s registered caregivers or present medical dispensary operations that intend to enter the state’s adult-use market. In basic, plant cultivation and ensuing product should be saved separate. The parallel, impermeable markets specified by the draft guidelines echo the state of affairs in Colorado. Additional, cultivation of medical and adult-use crops in Maine should be “visually and bodily” separated, in contrast to in Colorado the place crops tagged for the medical and adult-use markets could also be grown side-by-side

For present operations, co-location of medical and adult-use cultivation services is allowed. Nonetheless, the present guidelines state that potential licensees should illustrate areas distinct to medical and adult-use crops and manufacturing in facility and safety plans required within the license utility.

Moreover, “If a[n adult-use] cultivation facility with a marijuana retailer license (…) or standalone marijuana retailer is situated adjoining to a registered caregiver or medical marijuana dispensary, it will need to have distinctly separate entrances from a public proper of means.” Such necessities may pose difficulties for present medical cannabis companies that may have hoped to easily add extra point-of-sale stations for adult-use shoppers in a currently-operating medical storefront, as is allowed in another states.

Relatedly, adult-use operations that intend to combine vertically to various levels might co-locate cultivation, product manufacturing, and retail. Nonetheless, circumstances apply, reminiscent of a prohibition on having “inherently hazardous” supplies in a product manufacturing operation that’s co-located with a storefront.

Whereas the issuance of the primary draft of adult-use rules is a big step towards a functioning industrial market in Maine, when manufacturing and gross sales will start stays considerably unsure. A report from the Portland Press Herald, previous to the discharge of the draft guidelines, said that ultimate rules should be accepted by state lawmakers previous to the top of the legislative session in June if gross sales are to have an opportunity of commencing by the top of this yr.

Notably, the draft guidelines at present don’t embody proposed rules for testing labs. Moreover, tips that would allow present medical cannabis dispensaries or caregiver operations to start promoting to adult-use shoppers, or switch present stock into the new market, will not be included within the rules as they’re constituted at present.